CIMA P2 Practice Questions - CIMA P2 Advanced Management Accounting Exam - CIMA P2 Practice Questions - CIMA P2 Advanced Management Accounting Exam

Question 1

A manufacturer wants to design a product so that its expected lifetime cost will allow it to sell at a market-led price and still earn the required margin. Which cost management technique is being applied?

Target costing Standard costing Absorption costing Marginal costing

Correct Answer:

Target costing

Question 2

A product has a forecast market price of $40 and the company requires a 25% margin on selling price. The product currently costs $34 to make. What is the target cost gap?

$$2 $$10 $$6 $$4

Correct Answer:

$$4

Question 3

Which statement best describes life cycle costing?

It charges all overheads to production departments only It allocates joint process costs at the split-off point It values inventory at the lower of cost and net realisable value It accumulates all costs of a product from design through to abandonment

Correct Answer:

It accumulates all costs of a product from design through to abandonment

Question 4

Under activity-based costing, what is a cost driver?

A fixed overhead that cannot be traced to products The pre-determined absorption rate per labour hour The total cost of a single cost pool A factor that causes the cost of an activity to change

Correct Answer:

A factor that causes the cost of an activity to change

Question 5

An activity costs $80,000 and is driven by the number of machine set-ups. There are 200 set-ups in total, and Product X requires 35 of them. How much set-up cost is assigned to Product X?

$$10,000 $$80,000 $$28,000 $$14,000

Correct Answer:

$$14,000

Question 1

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About this Exam

Prepare with the CIMA P2 Practice Questions - CIMA P2 Advanced Management Accounting Exam practice quiz. This question bank includes 100 questions covering cost, project, product, capital, and price. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CIMA P2 Practice Questions - CIMA P2 Advanced Management Accounting Exam

This practice set contains 100 questions from the matching question bank and focuses on cost, project, product, capital, and price. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CIMA P2 Practice Questions - CIMA P2 Advanced Management Accounting Exam

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